What Is An Arbitration Agreement?
In the modern society, when you have a group of people working together, disputes are bound to arise, and there must be a way to solve the disputes if an organization is going to stay together. One of the methods that a firm uses is through an arbitration agreement. Most companies use arbitration as an alternative dispute resolution. For many years, we have had commercial disputes solved using voluntary agreements but nowadays we have employers using forced arbitration.
Arbitration agreements occur where the parties in a dispute agree to have their differences or disagreements resolved outside the court system. There is always a third party who is a private arbitrator and takes no sides when arbitrating the matter brought before him. The arbitrator will get paid by both the parties or at times by one of the parties involved in the dispute. It’s not a requirement for an arbitrator to be a judge or a lawyer though we have those who’re experts in the field.
At United Employees Law Group, we help the parties in disputes to come up with arbitration agreements to have their issues resolved. Most of the questions we help arbitrate are those involving employees and their employers. There are various reasons why we always recommend the use of arbitration agreements.
Benefits of arbitration:
1. It takes less time and is a speedy way of resolving disputes.
2. Arbitration is flexible in that the parties can set their rules of engagement.
3. The cost of the process is cheap compared to the court process.
4. You will have a pool of professionals who have the expertise in arbitration matters.
5. Arbitration is usually a private procedure and hence confidentiality of the matter gets upheld.
With forced arbitration, arbitration is imposed as a condition of obtaining employment or as a requirement for receiving some benefits related to employment. However, it has no legal backing for an employee to agree to arbitration if he feels that the dispute should land in a court.
If you, or someone you know, are facing legal issues in the workplace United Employees Law Group has the answers. Call Today for your free and confidential case review. Please feel free to CONTACT US with any questions about this blog or your exact situation.
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